24 Sep The 9 Top Challenges Multi-Restaurant Chains Face Today
Restaurant operators face countless challenges in meeting consumer expectations and offering omnichannel ordering experiences. However, the challenges for multi-restaurant chains, are prominent and are affecting profitability, the payment to franchisee fees, and more. To stay competitive and profitable, enterprises need to understand the top challenges of omnichannel in the industry, explains Nation’s Restaurant News. Operators need an understanding of why a thorough, integrated approach is necessary.
Talent Is Difficult to Find and Harder to Keep
Like many industries, the restaurant industry is experiencing a talent crisis. This is the most significant of challenges for multi-restaurant chains, and turnover rates among front-of-house workers sit at 154%. Meanwhile, management turnover rates stand out between 40 to 50%. These rates drive up overhead expenses, including the cost of finding, hiring, and retaining talent. This is in conjunction with an average restaurant worker wage increase of 1.5%, reports Foodable.
Consumers Equate Fast Food With Unhealthy Food
Another problem has roots in social media. The informed consumer is the health-conscious consumer. Fast-casual restaurants have become synonymous with unsustainable harvesting and unhealthy food. Yet, consumers still visit these establishments. The problem lies in striking a balance between service and quality that supersedes the notion of unhealthy foods.
Restaurants Are Undergoing Digitization and Off-Site Relocation
Restaurants are also moving into the omnichannel space, offering their products and service to any customer anywhere. The digitization of restaurants has triggered a relocation of critical functions, such as ordering and customer service, to off-site premises. As this relocation continues, restaurant operators and multi-restaurant chains will need to manage more locations.
Focus on Comprehensive Experiences and Service, Based on Consumer Preference
Restaurants also strive to deliver comprehensive, immersive customer experiences, and part of this rests and how the customer wishes to order and receive their order. In other words, businesses must offer branded delivery, third-party aggregators delivery, traditional takeout, drive-through, and dine-in service ordering options.
Third-Party Aggregators Decrease Profitability in Delivery Services
Speaking of the elephant in the room, third party aggregators, these marketplaces chop away at the profit margins of restaurants. Lost revenue is one of the leading challenges of the multi-restaurant chain, especially as third-party aggregators rise to dominate the food delivery industry.
Disparate POS Systems Result in Poor Visibility and Compliance
Another challenge rests within disparate POS systems. Disjointed systems result in poor visibility. Failure to track operations, including third-party services and costs, resulting in an inability to judge the true profitability of a location.
Challenges for Multi-restaurant Chains Include Distrust Between Franchisor and Franchisee
The missing data resulting from disparate POS systems presents additional challenges for multi-restaurant chains. The potential non-POS way of tracking creates a level of distrust between franchisor and franchisee.
Franchisees Make Mistakes When Rekeying Orders, Increasing Costs
When franchisees use tablets for each aggregator, they run the risk of making mistakes in trying to rekey orders and track costs.
Under Reporting Results in Lost Royalty Revenue
Some restaurant operators may overlook data and fail to report accurate information to the franchisor. Unfortunately, others knowingly underreport sales to avoid paying royalties. This will turn the industry upside down. Meanwhile, underreporting has additional implications for inventory management, cost control, quality assurance, and more, says 1851 Franchise.
Achieve Scalability, Efficiency, and Accountability With the Right Digital Ordering Solutions
Restaurants can overcome the challenges of multi-restaurant chains by reevaluating the level of technology in use within their organizations. Furthermore, they must take advantage of all technology and systems, including APIs and integrated capabilities, designed by third-party aggregators, to bring harmony and alignment to management. POS Integration helps with managing costs and transforms the low-profit margins of omnichannel restaurants into high-quality revenue streams. Learn more about which digital ordering solutions can help you overcome the challenges of multi-restaurant chains by visiting Tacit online today.